- Spear Capital has backed Greenwave Milling with a substantial debt facility that will help purchase raw materials for milling
- The deal will be carried out in a way that meets the private equity’s target for UN Sustainable Development Goals (SDGs)
- The investment will also help Greenwave Milling increase sales and its contribution to the Zimbabwean economy
Cape Town: Private equity firm Spear Capital has announced that it has concluded an investment deal with Greenwave Milling, a manufacturer, and distributor of quality high-value basic commodities throughout Zimbabwe.
The transaction was made via one of Spear Capital’s subsidiaries, Superior Food Group Africa Ltd.
Previously part of the Metro Group, which is already a Spear Capital investee, Greenwave Milling is now a standalone production unit for the group.
It manufactures, packages, and distributes a number of basic commodities including roller meal, refined meal, rice, cooking oil, flour, beans, salt, sugar, kapenta (a regional type of dried sardine), soya chunks, and other household essentials.
Under the terms of the deal, Spear Capital via its subsidiary Superior Foods has provided Greenwave Milling with a substantial debt facility.
The funding will be used to purchase raw materials for milling and down packing and to ensure that it is able to meet the growing demand for the Greenwave range of products.
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“Having been part of the Metro Group success story in Zimbabwe for several years now, we know how much intellectual capital there is in the business,” says Spear Capital Managing Partner, Martin Soderberg. “When some of that capital was used to launch Greenwave Milling as a standalone business, it only made sense to back it too.”
According to Soderberg, the deal will be carried out in a way that meets Spear Capital’s target UN Sustainable Development Goals (SDGs), including Gender Equality (SDG5), Decent Work, and Economic Growth (SDG8).
Through the investment, Greenwave Milling aims to increase sales and its contribution to the Zimbabwean fiscus.
The investment will further enhance Superior Food’s focus on building a stable food platform in Southern Africa and encourage Greenwave Milling’s ability to meet its financial and SDG commitments.
Through Spear Capital, Superior Food will provide funding to GW Milling, which is currently hard to raise in Zimbabwe, and unlock future growth and working capital.
Through its shareholders, Superior Food will assist GW Milling with managing its procurement of raw materials.
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